Contingency timeframes are legal arrangements that are added to a contract that protects both the buyer and seller from unexpected situations. However, both parties may withdraw from the agreement and eventually cancel the transaction if the conditions of the contingency are not met by the buyer and seller.
The inspection contingency allows the buyer to inspect the property before making the final decision to buy it. Otherwise, they may cancel the transaction if there were any problems encountered with the home. This is a great way to ensure that buyers are getting exactly what they want, and also not settling for less than their budget allows.
A home appraisal contingency is an agreement between a buyer and a lender that allows the buyer to back out if the property does not appraise at the purchase price. This means a home valuation professional will come in and determine the real value of the property. The lender can use this contingency to make sure the buyer isn’t overpaying for the property.
A mortgage contingency is a payment plan in which the buyer agrees to pay a certain amount of money to the seller within a period of time. If the buyer fails to make payments on time, they will lose the property. Furthermore, this contingency can be used by buyers who want to purchase their home thru financing.